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HomeMy WebLinkAbout09-13-1988 4 i1 f y, H, 4 C#TY of GENrON, TEXAS MUNICIPAL BUILDING/ DENTON, TEXAS 70201 /TELEPHONE (817) 500-83C Y ^ Off/co of the City Mani r tr L'. MEMuRAIVDUM ' TO: Jennifer Walters, City Secretary FROM: Lloyd V. Harrell, City Manager UAIE: September 6, 1966 SUBJLIA Special Called Meeting of the City Council I hereby call a special meeting of the City oC Denton City Council for September 130 1966 at 5:30 p, m, in the Civil Defense Room, r• , Q4,'arre City Manager 2969C I i r 4 i e. " F. two, , R e_ r r t 4)s a I N AGLhDA CITY OF DENTON CITY COUNCIL September 13, 1966 I Mork Session of the City of Denton City Council on Tuesday, i September 13, at 5:30 p.m. in the Civil Defense Room of City Hall at which the following items will be considered: y S:30 p.m, d 1. Discuss altern,ite bids for the Teasley Lane project. ` i 2. ; Discuss proposed ordinance setting new water rates. i 3. Update on the City health insurance program, I , 4. Executive Session: { A. Legal Matters Under Sec. 2(e), Art, 6252-17 r V.A.T.S. ~ f B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S.~ C. Personnel/Board Apppointments Under Sec. 2(g), Art 6252.17 V.A,T,5. Special Called Meeting of the City of Denton City Council on E Tuesday, September 13, at 7:00 p.m, In the Council Chambers of City Hall at which the following items will be considered: 11 Jaw. 7:00 p,m. 1. Hold a public hearing regarding the proposed 1966-69 City of Denton Program of Services. 1 Following the conclusion of the public hearing, the Council f will reconvene in the Civil Defense Room for a work session at 1 which time the following item will be discussed: 1. Discussion regarding the proposed 1966.69 City of Denton Program of Services. C E R T I F I C A T E 1 certify that the above aHa of meeting was posted on the bulletin r at the Cit of the City o Denton, Texas, on the day of , 1966 at t~ o'clock -SECRETARY 2976C i 3 N AGENDA CITY OF DENTON CII1 COUNCIL September 13, 1966 4 Work Session of the City of Def~ton City Council on Tuesday, September 13, at 5:30 p,m, in the Civil Defense Room of City Bail at which the following items will be considered: 5:30 p.m. r., 1. Discuss alternate bids for the Teasley Lane project. 2. Discuss proposed ordinance setting new water rates. 3. Update on the City health insurance program. 4, Executive Session: A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. 8. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel/board Apppointments Under Sec. 2(g), Art 6252-17 V.A.T.S. Sp--cial Called Meeting of the City of Denton City Council on Tuesday, September 13, at 7:00 p.m. In the Council Chambers of 1 City Hall at which the following items will be considered: 7:00 p.m. 1 I. 1. Hold a public hearing regarding the proposed 19b6-69 City of Denton Program of Services. Following the conclusion of the public hearing, the Council will reconvene in the Civil Defense Room for a work session at which time the following item will be discussed: 1. Discussion regarding the proposed 1966-69 City of Denton Program of Services. 77771 4 I ~ r C E R T I F 1 C A T E ii I 1 certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, i on the day of , 1966 at o'clock } CITY AIM 2976C j s ~ „ 111111111 IIIIIFIJ IF 11 11 Ilili'll till 'Kill It 4 WU-W I i i I S 1 M j f t r i y,. clryofDENrON, TEXAS MUNICIPAL BUILDiNO / DENTON, TEXAS 70201 /TELEPHONE (917)660-830? Office of the City Menegee M E M O R A N D U M TO: Lloyd V. Harrell, City Manager FROM: flick Svehla, Deputy City Manager DATE: September 9, 1966 t SUBJECT: Teasley Lane Bids i September 1, 1966, we received bids on the portion of Teasley Lane from Dallas Drive to the 1-35 frontage roads. We bid the project with a number of thickness alternatives and also asphalt and concrete alternatives. We also bid the project with a fixed time frame of 60 work days and a free or unlimited amount of days to be furnished by the contractor. These last two alternatives were connected to specific time frames with consideration for the facility being totally closed or open during construction. We set a minimal time frame of 60 days on the option that would close Teasley entirely, and there were longer time frames bid by the contractors if the project was f left open to sone traffic Juring construction, bids were taken this way In order to allow the Council to consider all the options before awarding the bid. Prior to doing that, Staff would recommend that we solicit , i input from the owners and the commercial tenants in this area. We could do this three ways, The first would be a process similar to that which was used on Teasley Lane recently. We would notify the owners and tenants of a scheduled meeting, hold a meeting to review the options, wait several weeks for the input, and then present the information to the Council, The second option would be a much faster option where we would try to solicit Information and prerogatives b phone. The third option would be to visit with tenants on the site. This last option would allow more explanation and information to be provided to each of the affected establishments. We would be able to provide drawings and show people on the ground what would happen in their particular area, s _I I , J , k~ "low -R ly Teasley Lane bids September 9, 1966 Page 2 The other factor that is concerning us is time of the year and its effect on the approaching business seasons. Contract letting this time of year always effects the holiday season, d Closing the facility and using the sixty day time frame, would mean that we would finish the facility some time very close to Christmas. If we allowed it to be open and used a linger constriction time period, we would affect all of the businesses all the way through the Christmas holiday season. liittier procedure will probably affect most businesses ii the same way for approximately the same amuunt of time. In the Closed scenario, none of the businesses would have access uff of Teasley (there would be access off of Dallas Drive and the frontage roads). Under the limited access option, we would allow traffic through the facility, but access to individual businesses would be closed for a similar amount of time Iq. (approximately 6U days). This would be because of the driveway I modifications that would have to be made, and when the middle I section of the road would be built no left turns would be allowed. We have made contact with the prospective low bidder should the project be closed. He has indicated that if the awards can be made soon, he would ba able to have the facility open before I f. Christmas. It may not be finished totally, but it would be open so that people could have access to all the driveways along Teasley. :I. Because the contractor has made these indications, we think it is imperative to get feedback from the affected owners and tenants as soon as possible. Therefore, we would recommend that we take the last approach to acquiring this feedback. We suggest that contact be made within the next week with as many owners and tenants as possible. We suggest that we visit with them and provide them infornation on the project and the two alternatives (I understand that at your Thursday morning meeting the Mayor suggested that Council members may want to accompany staff), that would allow us to come back to you on d September 20 with a recommendation to you to close the project totally and invoke the 6U work day requirement allowing the facility to be opened before Christmat, or to build the facility under construction and take approximately six months to finish the project. R If you or the Council has an further • Y any questions, we would be happy try to respond to them at the meeting. .I c ve a Deputy City Manager RS:bw 4230M i i Y T i N I I i .4S9e E JaWMkhv~' .TAiK 4W.1w1 mod~ moot C?.~ 00WO&W I~~MWrI 7JU.AI J/~,N}1► IiI~~/lr>iRLCr _ - , _ 1 .!'frMIM ~fAt,~ .l~;l/Arr N/,N.1Is• -s~[t~r ~Kirt 4 I;~N,rr r - • et l~'/. w 11I1II ~•arFtf I+Yf rL r. I / rAMIM~r .NyLfli e► ~ fv{ ~tJ~q rJQKL N _ . _ _ ~r /HI{/ f 1 10- 0I•• s'~iwwuv rrfrn,rs r~ 100srr ^q .a rKrriM KaN A a wre;r pwr sw~ s's►-w..a .rsf~nr.r , .YNrwanrr.►t n~ierie. die ~ I/tnlKeawr i b /AYMAIMVO ♦`r~ rI ~iglw /YM~N ~n R! r, -wW 4W 4"1u"I II ♦Te~a.e.~ /YOI• oloo" R C' IO&A✓ 01r✓rWI C ® ,t/MMr~' i/rr .wa.w+rVY.I akI.I.Y cl.villrtllw✓ A.KInM+~O M rA QI+Maan C«rw ire. R.~. bww.•..~rw.~~+~~ ~ < y''Cwlwn/ An~rwwr; AfM~.r p,.nt..~n sA %i.Mf . f .wrn.J. P ys•rr IF r I i A 1 ' I r r EEt 1 n I IF r r i 1 t 1 J { i i 1 I r I CX i~ September 13, 1968 f CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager SUBJ: RECEIVE 1988 WATER RATE STUDY. RECOMMENDATION: The Public Utilities Board, at their meeting of July 14 1988 recommended to the City Council approval of the proposed 1989, ' rate increase which is to become effective October 1, 1988. SUMMARY/BACKGROUND: A Water Rate Study has been conducted to determine the overall rate increase needed by 1?89. The rote study uses financial 9 analysis to reflect the overall financial situation of the Water Department, the Cost of Service Study to allocate costs appropriately to the various rate classes, and a Rate Design which incorporates information from the fin ncial analysis and the cast of service study to design fair a and equi►able rates. An overall 8 1121 increase In rates is recommended for 1989. B ased on the results of the cost of Service Study, residential customers will reeive a .7S rate. icrease commercial customerscwill receive a1 7.21 ratenincrease while he E It should be noted that even with this increase, the 1989 h financial statement still reflects a deficit of $39U,145*. ; Lowever, as can be seen from the attached Table, the 1986 financial statement shows an overall result of the postponement of the first gkany Roberts pay as a 1989. This gain will assist in paying for the losses in)989tto For fiscal year 1990, it is anticipated that a rate increase of approximately 51 may also be needel. ,i It is recommended that the proposed 1969 rate increase become effective on consumption 14 days after approval of the ordinance. *NOTE., The deficit reflects updated information. :'eduction in the Lake Ray Roberts payment from The recent 000 to $1,362,667 has led to a deficit of $3('0,145 instead of Ithe019 shown in the Rater Rate Study. 09,278 1 PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: ji City of Denton, Utility Administration, Other Departments, and the Citizens. i 1 1 tJ Page 2 ( t FISCAL IMPACT: She 8-1121 rate increase will generate $759,559 in revecue as can be seen below, 1966 1969 1969 BiIdgeted Actual Revenue $80649,007 $8,935,967 $9,695,546 Expense 5,625,000 7,0629691 710620691 $205249007 $1,6730296 $2,632,855 Debt Service $114U69UOU $1,652,000 $106520000 ROI 462,000 6719000 6719000 Payment of loan _ -0- 5001000 506,000 $ 9360007 ($10149,704) ($3900145) Respectfully submitted, I_ 3 Lloyd llCiRarre, , ty anager Prepared by, 'k7-E.-Ne s n, Executive i Director of Utilities ' Approved by, , N 3 'ff-, E. Keelson, Executive Director of Utilities 1 I Exhibit I Ordinance II PUB Minutes of July 14, 1988 III 1966 Rate Design Study Revenue Requirement Input i Parameters I i 60430:1-2 I I I ~ V I1 ; , 0 nPrOS e r Oentro Ya!er U!ilit? 33 U9:IF N,9 19ap Rate Ueritn 8tu~p R!Ve 9/8/88 , r e Ilaquirr.ae 1 Input Frtsae!ers RGVISBD: Descrfoti:e F'f 9-',C•81 F8 9-J"-P9 FI 9.30-N9 FY 9-1 1.00 E!!D,FTFD1 IFR~Pr8P0i I TntsI ruerat iIt Frp•naeI 11.193 117 It, 11 041 IS 011 . 106 IL491,105 P1':r: 1 2 Debt Service 1,511,404 !.IOF,CtO !,912,900 L812,Orn6 1 3 Reg Rrberts Pagtentr 0 P f,3F2,P9s 1,192.86; 4 Capital Allit10nI Carre-it Fua4ir1 1t 1,F21 9:51559 956,619 4SL619 Less: 5 Other Revenues 139.000 14 F,040 19,000 11,000 B Nan-Operatiel Revenue 066,000 IE4(M 300.000 30 P,D00 T Bgasls: raeh jwtrue Ie4uirrent 56,341,004 11 23I,c00 11,9 U,69f 98,911,691 9 Percent Chance 29,511 14,001 11,2E1 O,OC1 9 Less: Debt Service 11.531,000 11,42f,O00 11,812,000 (1,952,000 i 10 Fquelc 12pe7ser Before Debt Coverage 11,012,000 11,875,000 17,062,691 1i,0E2,811 Plus: II Interest Portion of Debt 9271412 919,913 I, III III I, 210, P2; I2 Depreciation Irpense 1,1lf,T79 127P,464 1,115,110 1,111,190 I3 Iquals: Accrael flevenue Regolresent 8,980,191 0,023,107 9,690,661 ;,699,641 U Plant fn It ell ce 131,912,461 x11,062,375 111,131,111 161,899,112 15 Lees: Aecuaulated Depreciation 19,160,1ft tip, 118430 1;2,111,780 Ii2,153,.0u 16 Less: Contributions 20,311,111 11,c42,f15 11,191,911 11,t92,718 ~e 11 Plug: MP Iond Funded 0 0 0 0 11 144111; Net Plant In Serufre 2,060,797 11,280,991 11,119,111 11,119,114 a i I! oFerttiol Revenue 16,111,000 10,619,007 11,935,987 l9,f9S,144 Fate Rivera Orowth I, 110, 000 !,105,041 296,990 1,016,139 20 Fast I1te Chilli 0.001 0,091 0.00E Mrs 21 NDt Used ! 22 Ieturn (ig)-1111 11136,eSll 1025,120 ±1}92,6771 !6,992 21 Late of Return 12[)+1161 -18.291 4.111 -1,971 9.051 j tl Ali 86.81 Return, Late of Return If Debt Col. Ratio 1,17 2.67 1,53 91 i 26 FYedl Available After Debt (191•(71 Im rpo 11,:19,007 121,255 11801891 F If Return nn teveataeet 162,040 1921^00 671,000 6711000 1• , } 21 Funds Available Wet Return (261,0001 936,001 (t49,7D1! 109,859 It Plus PaFlent on Shcrt Tiro Loan 0 0 100 401 (1D0,40m a 10 Funds AW1 Ole After Return Ind Pa2ae0t in Shoat Tens Lnan 1261,0001 116,007 (1,119,?011 1190,!491 Cherie Per IMIa1 t,629'e 210051 l,C810 I,i600 I , i i fY. 4 Y, EKERPT j P FTLIC; U11LI I IES 13CWiD MINUTES July 14, 1988 7. RECEIVE _1988_W4TFR_ILATE_SIWY. the 1988 Prater Rate Study was presented by R. E. Nelson, Executive Director of Utilities, Dips Dutie, Financial Analyat for the Utility Department and author of the study, and Rachel Reece, CPA, outside consultant and previously with Arthur Anderson, and has made a complete review of the water study. Reece's review will assure that the study has addressed ell requirements that me), be made by the Texas Water Commission. klethodology, allocation factors, rate design and financial I analysis were reviewed for the Board. It was pointed out that [ even with the proposed 8.5% rate Increeee, the Water System will experience a net lees In Fiscal Year 1989 of $409,278. However, postponement of the Ray Roberts obligations by one year will offset this lose. The proposed rate increase will result in an Increase of $3.00 per month on a residential cuatomer's aurrmer bill and $1.95 lncreeae per month during winter. Overall financial requirements of the Water Utility would justify a larger Increase, but the limiting factor In the rate case Is the maximum amount of Increase tolerable to the rate payer. For this reason, the 8.5% rote Increase is proposed at this time. i After general discussion, the Board tabled this Item until the next maetIng. Board adjourned for a break of approximately 15 minutes. Upon return from the break, the board decided to reconsider th-A proposed rate Increase and voted to do ao. Then Chew made t. motion to recommend to the City Council that the City adopt the rate schedules that are presented in the cost of Service Study. Second by Thompson. All eyes, no nays, motion carried. r f 1 i 6U43Ur3 r J 2461L i i i j NO. AN ORDINANCE ADOPTING NEW WATER RATE SCHEDULES; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Rate Schedules for water service as prov a or n Chapter 25 of the Code of Ordinances, are hereby amended as follows: WATER RATE SCHEDULES PAGE WR Residential Water Service 2 i i j WRN Residential Water Service Not Connected to Sewer 4 WRW Religious Worship Water Service 6 WC Commercial/Industrial Water Service 8 j WCS Commercial/Industrial Water Service Meter 10 % WCN Commercial/Industrial Water Service Not Connected to Sewer 11 WWI Water Sale for Resale to Municipal Corporations ` Water Districts S Other Governmental Entities 13 i By Agreements Prior to June 1, 1986 WW2 Water Sale for Resale to Municipal Corporations Water Districts & Other Governmental Entities By Agreements After June 1, 1986 14 WG Intra-Governmental Water Services Not Connected a to Sewer 16 WGN Intra-Governmental Sales of Finished Water 18 WGU Intra-Governmental Sales of Untreated Water 20 WF Standby Fire Service Water Line 21 ~C WFH Metered Water from Fire Hydrant 22 WRE Extra Jurisdictional Residential Water Service 23 WCE Extra Jurisdictional Commercial/Industrial Water Service 25 SF-R Special Facilities Ritter 27 } ,r I I ~ i SCHEDULE WR RESIDENTIAL WATER SERVICE APPLICATION Applicable for single family residential service, and individu- ally metered apartments or mobile homes or multi-family facilities I with less than 4 units. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Billing Per 30 Days_ f 6.50 3/4" Meter i 1" Meter 7.75 1-1/2" Meter 112 ..05 0 2" Meter (2) Volume Charge Rate Per 1,000 Gallons a j WINTER SCMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. 0-15,000 gals 1.80 1.80 ~ 15,000-30,000 gala 1.85 2.55 1.90 3.10 over 30,000 gals Facility Charge MINIMUM BILLING: PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. i PAGE 2 G i N E { PRORATION OF UTILITY HILLS t" (a) Billing for the Facility charge shall be based on 12 bill- ings annually, f{ ~ Formula: Actual days in reading ._period x facility charge 1 3 days (b) Billing for the water used shall be based on 30 days month to determine the million gallon consumption o pbe charged to each rate block. Formula: f Actual days in readin period x GAL in rate block x RATE per aye 1,000 gallons in rate block t l r i1i l PAGE 3 I N V I SCHEDULE WRN RESIDENTIAL WATER SERVICE NOT CONNECTED SEWER APPLICATION Applicable for single family residential service, and individu- ally metered apartments or mobile homes or multi-family facilities with less than 4 units, where the metered water is not returned to the wastewater system for collection and treatment; e,g., lawn sprinkler or septic system, I Not applicable to resale service in any event, nor to temporary, I standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Billing Per 30 Days 3/4" Meter 6,50 1" Meter 7.75 1.1/2" Meter 11.00 { 2" Meter 112.25 I f (2) Volume Charge Rate Per 1,000 Gallons M WINTER SIMMER Billing months of Billing months of NOV. through APRIL MAY througi: OCT. a 0-15,000 gals 1.80 1.80 15,000-30,000 gals 1.85 2.55 Over 30,000 gals 1.90 3.10 MINIMIM BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the j special facilities rider. 4 PAGE 4 i s f f i PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- ings annually. Formula: Actual da a in readin riod x facility charge ays (b) Billing for the water used shall be based on 30 days per F~ month to determine the million gallon consumption to be charged to each rate block. Formula; Actual days in reeding period x GAL in rate block x RATE per 30 days 1,000 gallons in rate block alp 16 ~ 1. ;y + t PAGE 5 4 1 "u N i t SCHEDULE WRW RELIGIOUS WORSHIP WATER RATE APPLICATION Applicable to any facility used primarily for religious worship, education and meeting Vernon's Annotated Texas Statutes (V.A.C.S.) guidelines for property tax exemption as a religious organization, served by a single water service line through one meter. Not applicable for resale ppoo- ary, standby, or supplementary service in excany ept intconj nctione r with applicable rider. it NET MONTHLY RATE F i (1) Facility Charge Billing Per 30 Days 3~4" Meter 6.50 1 ' Meter 7.75 1-1/2" Meter 211 Meter 11.00 112.25 (2) Volume Charge Rate Per 11000 Gallons WINTER SIMMER i Billing months of Billing months of NOV. through APRIL MAY through OCT. 0.15,000 gala 1.80 $ 1.80 15,000-30,000 gale 1.85 $ 2.55 Over 30,000 gals 1190 $ 3.20 a, MINIMIM BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES 4 All services which require special facilities in order to meet r` cu t omer's service requirements shall be provided subject to the special facilities rider. PAGE 6 I 1 r q I I I i V PRORATION OF UTILITY BILLS a (a) Billing for tLe Facility charge shall be based on 12 5 , billings annually. Formula: Actual 16s ainreading period x facility charge Ys i (b) Billing for the water used shall be based on 30 days per month to determine the million gallon consumption to be ? charged to each rate block, } Formula Actual days in reading period x GAL in rate block x RATE per 30 daya 1,000 gallons in rate block + 1 1 a 11 t PAGE 7 Y j i j SCHEDULE WC COMMERCIAL/INDUSTRIAL WA-ER SERVICE RATE APPLICATION Applicable to all commercial and industrial users or her all water water users not otherwise classified under this ordinance. otFor provided at one point of delivery and measured through { one meter, Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with j applicable rider, NET MONTHLY RATE (1) Facility Charge Billing_Pe p Days 3(,4" Meter 12.75 1 Meter 1-1/2" Meter 114 6,25 2" Meter 18.00 3" Meter 53.50 4" Meter 190.00 6," Meter 115.00 8 Meter 130.00 (2) Volume Charge $1.85 per 19000 gallons MINIMIii BILLING: Facility Charge PAYMENT j 1 Bills are due when renderedo and become within 15 calendar days from date of issuance peat due if not paid F SPECIAL FACILITIES All services which require special facilities in order to meet customers service requirements shall be provided subject to the special facilities rider. d t PAGE 8 J j ^ i i j PRORATION OF UTILITY BILLS I (a) Billing for the Facility charge shall be based on 12 bill- ings annually. d Formula: 1 Actual days in reading period x facility charge j 3 ays (b) Billing for the water used shall be based on 30 days per month to determine the gallon consumption to be charged to each rate block. Formula: 1 F Actual days in reading period x GAL in rate block x RATE per 30 days 1,000 gallons in rate block ' 3 I tl. i i y I i 'S5 t I ell 5 .i 1 PAGE 9 I~ f i k E SCHEDULE WCS COMMERCIAL/INDUSTRIAL WATER SERVICE METER I USED TO DETERMINE WASTEWATER VOLLME97- APPLICATION 1 Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance, For all water provided at one point of delivery and measured through one meter to be used in determining wastewater volumes only. (Sae Section S-2A of Sewer Service Ordinance for volume charges, Ordinance No. 87-197, as amended.) Not applicable to resale service in any event, nor to Lempo rary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE Facility Charge Billing Per 30 Days 3 /4" Meter 12,75 ! 1 Meter 14,00 III 1-1/2" Meter 16.25 2" Meter 16.00 3n Meter 53.50 4" Meter 90.00 6" Meter 115.00 8" Neter 1130.00 MINIMLM BILLING: Facility Charge Pb,1MENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF UTILITY BILLS Billin8 for the Facility charge shall be based on 12 billings E annually. Formula: Actual da s in reading period x facility charge days PAGE 10 ;i e &Edam i SCHEDULE WCN f E COMMERCIAL/ INDUSTRIAL WATER SERVICE ( NOT CONNECTED TO SEWER APPLI___-_CATION i Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance. Lor all water provided at one point of delivery and measured through one meter where the metered water is not returned to the waste- water i product on eor f irrigation collection or where wastewater ~ e flow water is mused in separately. easured Not applicable to resale service in any event, nor to tempo rary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE ! (1) Facility Charge Billing Per 30 Devs 3/4" Meter I" Meter 12.75 14 1-1/2" Meter 1 6.25 2 Meter 18,00 ;s 3" Meter 53.50 4" Meter 90.00 611 Meter 115.00 811 Meter 1130.00 (2) Volume Charge $1.85 per 1,000 gallons MINIML14 BILLING: Facility Charge PAYMENT when within 115 tale duar days frmedate oa become f issuance pest due if not paid SPECIAL FACILITIES All services which require special facilities in order to meet customers service requirements shall be provided subject to the special facilities rider. h ' PAGE 11 i i 3 r i i r PRORATION OF UTILITY HILLS :(a) Billing for the Facility char e ings annually, y g shall be based on 12 bill- . s' Formula: I Actual e s in readin eriod x facility charge 91 ays {b} Billing for the water used shall be based on month to determine the gallon consumption to be30charge to each rate block, y per Formula: Actual da a in readin 1 aya eriod x CAL in rate block x 1,000 gallons in rate blocky f C s s ,ry I PACE 12 1 t~ , w wf l ~ y I l• rT V SCHEDULE WWI WATER SALE FOR RESALE TO MUNICIPAL CORPORATIONS, i WATER DISTRICTS, AND OTHER GOVERNMENTAL ENTITIES `i BY AGREEMENT EFFECTIVE PRIOR TO JUNE It 1986 { APPLICATION _ Applicable t,, all water sales contracts with municipal corporations, waLar districts, or governmental entities made prior to June 1986, for the purpose of providing water for resale to the public. Not applicable for temporary, standby, or supplementary service except in conjunction with applicable rider. I MONTHLY CHARGES (1) Facility Charge $150.00 (2) Volume Rate $ 0.73 per 1,000 gallons (3) Demand Rate $192.00 perr1,00~ 0 gallons i M *ANNUAL CHARGE I (4) Readiness to Serve Rate $ 0.3813 per 1.000 gallons *As determined in the last month of each Contractual Water Year. The annual charge, if any, shall be included on the monthly billing for the next July following the end of the Water Year for which it is charged, and shall be billed and be payable in accordance with the monthly billing provided for below. PAYMENT Denton shall render bills by the tenth (10th) day of each month. Bills shall be due and payable when rendered."Bills are considered delinquent if not paid by the twenty-fifth (25th) day of the month. There shall be a five percent (5x) or five hundred dollar ($500.00) charge, whichever is leas, added to the bill if not paid by the twenty-fifth (25th) of the month. EFFECTIVE DATE The charges stated herein shall be applied to all water services supplied after January 1, 1989. Until January 10 1989, applicable charges will be determined by Schedule W3 of Ordinance No. 87.152. PAGE 13 r SCHEDULE WW2 WATER SALES FOR RESALE TO MUNICIPAL CORPORATIONS, WATER DISTRICTS, AND OTHER GOVERttXENTAL ENTITIES BY AGREE ENT AFTER JUNE 1 1986 j APPLICATION Applicable to all water sales contracts with municipal corpora. tions, water districts, or governmental entities made on or after June 1, 1986, for the purpose of providing water for resale to the I public. Not applicable for tem rar ' except in conjunction with applicabstandb le riders supplementary service MONTHLY CHARGES (1) Facility Charge $164.25 (2) Volume Rate $ 0.73 per 1,000 gallons 1 (3) Demand Rate $262.56 er 1 000 &allons *ANNUAL CHARGE i (4) Readiness to Serve Rate $ 0.3813 per 1,000 gallons *As determined in the last month of each Contractual Water Year. The annual charge, if an monthly billing for the next July shall following the wend of the Water Year for which it is charged, and shall be billed and be payable in accordance with the monthly billing provided for below. PAYMENT Denton shall render bills on the tenth (10th) day of each month. Bills shall be due and payable when rendered, Bills are considered delinquent if not paid by the twenty-fifth (25tQ da month. There shall be a five y of the ($500.00) charge, whichever is less, ent added)torthevbillnif notolpeid by the twenty-fifth (25th) of the month. If not paid by the lest day of the month, there ,hall be an additional interest charged on the unppaid balance, o .,di to the auction average rate quoted on a bank discount bas' for a twenty-six (26) week treasuryy bill issued by the United States government, as published by the Federal Reserve, for the week prior to the date such bill or bills are delinquent, or ten percent (10%), whichever is less. PAGE 14 . 4 i F . EFFECTIVE DATE The charges stated herein shall be applied to all water services supplie d after January 1, 1989. Until Januar 1, 1989, applicable " charges will be determined by Sch y edule W3A of Ordinance No. 87-152. j I i y 1 i i 7 I u { I PAGE 15 i i I ~ 1 1 M~ I I I 1 SCHEDULE WG 1 INTRA-GOVERNMENTAL SALES OF FINISHED WATER IIiI APPLICATION ? Applicable to sales of finished water to all City of Denton Departments and accounts supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. I NET MONTHLY RATE t (1) Facility Charge Billing Per 30 Days 3/4" Meter 11.25 1" Meter 12.50 1-1/2" Meter 15.50 2" Meter 17.50 3" Meter 53.50 411 Meter 85.00 611 Meter 107.00 81I Meter 1125.00 (2) Volume Charge $ 1.80 her 1,000 gallons MINIMUM BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF _UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- ings annually. PAGE 1L i i w t j ? Formula: Actual days in reading period x facility charge 3 days (b) Billing for the water used shall be based on 30 days per ` month to determine the gallon consumption to be charged to each rate block. Formula: Actual days in reading period x GAL in rate block x RATE per days 1,000 gallons in rate block a i r j i PAGE 11 i i I; SCHEDULE WGN i INTRA-GOVERNMENTAL WATER SERVICES NOT CONNECTED TO SEWER j APPLICATION Applicable to sales of finished water to all City of Denton Departments and governmental agencies supplied at one point of delivery and measured through one meter where the metered water is 1 not returned to the wastewater system for collection and treatment. 11 i Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Billing Per 30 Dam I 3/4" Meter 11.25 l" Meter 12.50 1.1/2" Meter 15.50 2" Meter 17.50 3" Meter 53.50 4" Meter 85.00 6" Meter 107.00 8" Meter 125.00 .I (2) Volume Charge $1.80 per 1,000 gallons MINIMUM BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided cub,ject to the special facilities rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- ings annually, ,I PAGE 18 ti. r f i. I N r i 1 Formula: Actual days in reading period x facility charge 30 days (b) Billing for the water used shall be based on 30 days per month to determine the gallon consumption to be charged to each rate block, i Formula: Actual days in reading period x GAL in rate block x RATE per days 1,000 gallons in rate block 'fr KAr i i 1• r` I 6- % i PAGE 19 4 J r t. n i SCHEDULE WG U INTRA-GOVERNMENTAL SALES OF UNTREATED WATER APPLICATION Applicable to all City of Denton Departments and accounts for untreated water supplied at one point of delivery and measured through one meter. Not applicable for resale except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge $115,00 per 30 days r` (2) Volume Charge $ 1.05 per 1,000 gallons MINIMLM BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance, SPECIAL FACILITIES All services which require special facilities in order to meet +F { customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- ings annually. Formula: Actual a in readin _period x facility charge flya- a--- (b) Billing for the water used shall be based on 30 days per month to determine the gallon consumption to be char ed t each rate block, g o Formula: Actual des it reading period x GAL in rate block x RATE per `oats 1,000 gallons in rate block PAGE 20 4 i 1 SCF r.DULE WF STANDBY FIRE SERVICE WATER LINE APPLI__ION Applicable to commercial and industrial users for unmetered I fire service water line to serve only sprinklers or other private fire fighting equipment. Not applicable for resale in any event. NET MONTHLY RATE Facility Charge Billing Per 30 Dave u Line 80 8" Line $20. 32.06 06 MINIM Ud BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- 1 ings annually. E Formula: Actual days in readin riod x facility charge 30 ays PAGE 21 4 r s~ I SCHEDULE WFH METERED WATER FROM FIRE HYDRAN I T f ! APPLICATION Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting, DEPOSIT; 9650,04 User shall place a deposit for each use of each of the City's ` hydrant meter(s) needed. Deposit to be returned when meter is returned and final bill is paid. E NET RATE Volume Charge: 9 1.94 per 11000 gallons Volume use shall be computed b subtra by ctin at time of $ the meter customer paying deposit and receiving meter fromemete8 reading upon return of meter times any applicable multiplier, FACILITY CHARGE: $ 20,00 per 30 days INSTALLATION CHARGE: 9 41.30 per meter per installation PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. J j 1 PAGE 22 Y !I 1 ` t; SCHEDULE WRE EXTRA-JURISDICTIONAL RESIDENTIAL WATER SERVICE APPLICATION Applicable for single family residential service, and ir.di- vidually metered apartments or mobile homes or multi-family facilities with less than 4 units outside the corporate limits of the City of Denton. NET MONTHLY PATE , (1) Facility Charge Bill1U Per 30 Days K 3/4" Meter 9.00 i Meter 10.00 1-1/2" Meter 14.00 2" Meter 116.00 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER I Billing months of Billing months of r NOV. through APRIL MAY through OCT. 0-15,000 gals 2.45 2.43 15,000.30,000 pals 2,45 3.25 Over 30,000 gals 2.45 4.00 MINIMUM BILLING: Facility Charge PAYMENT Bills arA due when rendered, and becomo past due if not paid within 15 calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's servics requirements shall be provided subject to the special facilitic,! rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- ings annually. 1 PACE 23 F i 7-7 1 Formula: Actual da s in reading rpe ioa x facility charge aya { (b) monthnto for the determine water used the gal shall be sed on each rate block. 30 days per pbaon to be charged to Formula: i~ Actuays in raeadin eriod x GAL in rate block x 4 RAPE per 1,000 gallons in rate block ~t f J i i ~ i F PAGE 24 i i F: } Ia1 ~'1 1 I r p~ f I SCHEDULE WCE EXTRA-JURISDICTIONAL COMMERCIAL INDUSTRIAL WATER SERVICE f APPLICATION € Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one point of delivery and measured through one meter. Not applicable to temporary, standby or supplementary service, except in conjunction with applicable rider. ' I NET MONTHLY RATE j (1) Facility Charge Billing Per 30 Days 3/4" Meter 15.50 1" Meter 17.00 1-1/2" Meter 21.50 JI 2" Meter 24.50 3" Meter 73.25 4" Meter 123.50 6" Meter 157.50 81' Meter 1178.50 (2) Volume Charge $2.55 per 1,000 gallons I MINIMUM BILLING: Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within 15 calendar days from date of issuance. x SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on 12 bill- ings annually. PAGE 25 ~t Formula: Actual da s in readin riod x facility charge ays tY9 (b) Billing for the water used shall be based on 30 days per month to determine tht: gallon consumption to be charged to } each rate block. Formula: ..ctual da s in reading period x CAL in rate block x RATE per ays 1,000 gallons in rate block { t j t , i l f i PAGE 26 1 i a s ~ dyr y -i y SPECIAL FACILITIES RIDER (1) Applicability: f All service shall be offered from available facilities. ~I a customer service characteristic requires facilities if and 3 devices which are not normally and readily available at the location at which the customer requests service, then Utility shall provide the service subject the this schedule. to paragraph 2 he (2) The total cost of all facilities required to meet the customer's load characteristics which are incurred b the Utility shall be subject to a special contract entered into s between the Utility and the customer. This contract shall be signed by borh parties prior to the Utility providin service to the customer, g i SS ; a I i i PACE 27 1 4 3 i SECTION II. That if any section, subsection, paragraph, sentence, 'fase, phrase or word in this ordinancoapplication thereof to any P--rson or circumstances is held 4i invalid by any court of competent jurisdiction, such holding ` shall not affect the validity of the remaining portions of this ;t x ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION III. That -he Schedule of RA►es herein adopted shall be a ect ve, charged and applied to _ne first regular billing cycle on or after October 1, 1988 except for Rate Schedules WW1 and WW2 which shall become effective January 1, 1989. PASSED AND APPROVED this day of , 1988. i RAY 9 P E , MA t ATTEST: JENNIFER WALTERS, CI SECRET APPROVED AS TO LEGAL FORM: DEBRA ADANI DRAYOVITCH, CITY ATTORNEY BY: 2 c I i PAGE 28 M Littlill [it 11191F lilt IIIIILIIII a i 44.0 z 1 r.. -.r T • ~ - -_--,-,rte: - 2 ~ p .k' ClTYODENTON,TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76101 / TELEPHONE(817)566.8200 ? MEMORANDUh1 TO: Betty bCKean, Executive Director Municipal Services/Economic Development FRCh;: Thomas W. Klinck, Director Personnel/Employee Relations DATE: September b, 1988 SUBJECT: Recommended Stratcgies on City's Self-Insurance Fund In researching the insurance fund's status for budgeting purposes in 1987/880 we estimated a flmd deficit by the end of 1987/68 fiscal year at approximately $ 225,OOU, This *as based on the most recent claims data, "shock" claims experienced, and projections of revenue and other expenses, I As a result, the City Manaper's recommendation to City Council was to put i $170,000 into the insurance fund (split proportionately between the general i fund and other funds) beginning with the 1968/89 budget year. In addition, a recommendation for rate increases for City employee dependent coverage was made that would reasonably bring the fund to a surplus over a 5 year period of time and yet, not impact City employees' medical expenses too heavily. The City h!anager also recommended that we set aside $30,000 for an actuarial audit to assist us in establishing future rates for the fund's long-term viability. Since those projections were made, unfortunately, the "shock claims" have not leveled out as anticipated (Attachment 1). As a result, the projected deficit 1 which reflects actual claims through August 1968, estimated individual stop 1 loss recovery, and other fees and expenses, have been revised upward to ( $363,95U (detailed in Attachment 2), In studying the claims history of the insurance fund from 1963/84 to 1987/88 (Attachment 3), it is evident that the current budget year is significantly unusual with the "shock" claims that we have experienced. Yet, it could be reasonably anticipated that the claims would increase each year by approximately 10%, In addition, the following are other revenues anticipated in the 1988/69 budget year: ,1 r Memo - Betty hckean Insurance In Page 2 1 Anticipated Revenues Amount Infusion from City revenues $17U,OU0 " Estimated aggregate stop loss recovery 1500000 Estimated employee contributions from 130,ODO rate Increases Additional WC payments with minor plan 500000 design changes (see Attachment 4) TOTAL $SUO,U00 These additional dollars plus future rate increases planned would begin to ` bring the deficit in line in the 1988/69 and 1989/90 budget years (Attachment 5). Projecting these through to 1992/93 (five year time frame) the fund would 3 be anticipated to maintain its viability (Attachment 6). In the meantime, we would hire an outside firm to conduct an actuarial audit and make recommen- dations to properly fund the self-insurance fund in future years. I In addition, we are currently in discussions with Gilbert Bernstein at the Denton Independent School District. he are exploring ideas, mu wally beneficial plan designs, coverages, and ways to join together to negotiate more favorable rates with the local Denton hospitals, doctors and other health care providers (Attachment 7). F Finally, I have provided some additional background information on both the self-insurance health plan and Naxicare and Southwest HMOs (Attachment 8). Should you require further information on the insurance fund and its current status, please let me know. I Thank you. j ofF~ mas W. K c c r i 49W 090888:1000 i J . ATTAMENT 1 SHOCK CLAIMS Claims $5,000 and over 11/01188 - 07/31/66 Employee's Child Drain Tumor $2371273* I Former Employee (WORA) AIDS 33,602 I Employee Cancer 28,573 Employee Heart Attack 26,265 Employee's Spouse Depression 161458 Employee Psychological 80353 Employee heart Attack 120162 Employee's Spouse Stroke 229320 E TOTAL ' *Experted Individual Stop-loss recovery - $1779273 ($2.7,273 - $(-,0,000 $1770273) I 4963P k 090888:1020 f i 6 f y Tq kb ,p 4 t N f i ATTACHMENT 2 CITY OF DENTON SELF INSURANCE FUND REVENUE/EXPENSE PROJECTIONS OCTOBER 67 - SEPTEMBER 68 ` I Oct 68 Projections Oct 88 ReviseI Using Apr 68 Data I Projections Using July 88 Data 88 Data Revenue I f t I I r City Contribution I I Premiums Other £ 26,962a I £ 7071678 1 I I 284,767c } - HMO Admin. - LTD Premiums f - Emp./Retiree Pd. I f t Premiums SUBTOTAL Ex enses I Personal Services I 15,326 I 15,328 Ins. Processing Feesl ILO 797 + 180,587 - Ind. Stop-Loss I - Aggr. Stop-Loss I I - Admin. Fee I I - LTD ChargES - UR Fees I + j Claims i 967,956b i 1,147,2O4d SUBTOTAL I -3 Gain (Loss) I (211,600) ' I (350,614) I I I I Funb Balance I I I Beginning I ( I -13,276) 6OU I ( -13,276) Gain (Loss) ' i (-3500674) Ending I Z-'f3;7i76~ + 7`3,'„3] s aEstimated Individual stop-loss recovery - £156,464 a } bActual clairts through April 68 + £60,000/month cEstimated additional £20,E09 Individual stop-loss recovery dActual claims - May £ 43 967 June `9,443 j July 1120960 August 132,916 September ILO,wO (Estimate) 1426z 65+GE68:162U I 1 t M 1 !s i ATTACh;£NT 3 i cLAIMS hISTCRY (Fiscal Years 63/64 to 87/88) Claims Average Fiscal Year Processing Total Monthly Claims Costs s Amual Cost Cost ) 63/84 $493,632 $33,707 $526739 64/65 4469241 ' $43,694 65/86 30,925 479,166 39,930 573G95 66167 r 379316 6100412 50867 ' 648 079 ' 67/88 ' 411441 6690520 57 466 9550956 ' 25,070 9611026+ 96,102 *Includes claims Paid through July 31, 1968; expected aggregate stop-loss recover , z E r it RS 1 ` j 1 4963P 090666:1110 i V h' i ATTAMENT 4 CITY OF DENTON HEALTH PLAN PROPOSED CHANGES CURRENT CURRENT PROPOSED PROPOSED EiENEFiT CITY PLAN PPO CITY PLAN PPO CHANGE kkk PREVENTIVE CAkE ! I I I Annual Health ! Not Covered I Not Covered I Not Covered I Not Covereo No Assessment I ! ! I J Immunizations I Not Covered ! Not Covered I Not Covered I Not Covered I No Well-Child Care ! Not Covered ! Not Covered ! Not Covered ! Not Covered I tic Irtmunications/Well I Not Covered i Not Covered i Not Covered i Not Covered i No baby Care HOSPITALIZATION I I ! I I f ~ Semi-Private Room 16C% of Eligible I blOO Co-pay 1 80% of Eligiblel $200 Co-pay I Yes and ICU Care ! Charges After I 90% of ! Charges After I 90% of ! Yes I $250 Deduct. I Eligible ! $250 Deduct. I Eligible Charges] Charges Physician and f Inc. in Above ! Inc. in Above I Included in I Included in Abovel Surgeon Care ( I I Above I f ! I I ~ Lab and X-Ra ! Inc. In Above I Inc. in Above f Inc. in Above I Included in Abovel SKILLED NURSING { CARE i I I ! ! I Skilled Nursing I l0U% Hospital ! Not Covered 11LL% Hospital Not Covered I No ! { Average Semi- { I Average Semi- I I { Private Rate { I Private Rate ! Max 60 Days I I Pax 60 Days I ! Per Cdnf. I I Per Conf. I I OTHER k£ DICAL EXPENSES + I Accidental Injury { 1LL% of First 110O% of First 116C% of First 11005; of First I No I $3L0-balance I MC-balance I 5300-Balance ! 5300-Balance I $2`.0 Deduct. I 5C% of 1 $250 Deduct. I 905E of I I 60% of I Eligible Exp.1 80% of ! Eligible Exp. I Eligible Exp. I I Eligible Exp. J I I I ICE I CITY OF DENTON HEALTH PLAN PROPOSED CHANGES OENEFIT CURRENT CURRENT PROPOSED 017Y PLAN PPO CITY PLAN PROPPO POSED CHAfJGE Emergency Room I $250 Deductible 1 Service 90~%6 of 1 $25O Deductiblel 90% of Eligible I I 60% of 1 Eligible Exp,1 &o% of Eligi- I Expenses No Eligible Exp. I ' ble Expenses 1 I I I I I 1 I I I E Chiropractic Svcs. 1 $250 Deductible l Not Covered 1 I ! ! $250 Deductiblel Not Covered 1 ~ I 80% of I I eon of ~ No ' Eligible Exp. j i Eligible Exp. 1 I I Physical Therapy ! $250 Deductible l Not Covered I I I 80~ of 1 1 $250 Deductiblel Not Covered l Na 60% of I Eligible Exp. I I l I I I Eligible Exp. 1 I Max Benefit 1 1 Cardiac Rehab Care 1 $250 Deductible I Not Covered I 80b of 1 I I Not Covered I No Eligible Exp. I I l I I I I Physician office 1 $250 Deductible 1 $5 Co-pay 1 I ' Visit e V 1 $250 Deductiblel $10 Cc-pay Officel f I BUSS of ! Office Visit 80% of Yes Eligible Exp. I I I Visit 1 I Eligible Exp. 1 I r Office Surgery I same as Cffice 1 90% of I I I f Visit I Same as Office 19D% of 1 No 1 i Eligible Exp•1 Visit + Eligible Exp. l I Office I Same as Office 1 90% of 1 I Anesthesiology I Visit i Eligible Exp. I SVisits Office 1 9G% of l No l 1 I Eligible Exp. 1 Hospital Out I Deduct. Waived- 1 100% of I l Patient Surgery 1 1GG'~ of I Deduct, baived-1 100% of I No or in Free I Eligible Exp, Eligible Exp.) 100% of I Eligible Exp. I Standing Surgical l I Eligible Exp. ! Center I l { I i 1 1 I' h- 1 4 i• CITY OF DENTON HEALTH PLAN PROPOSED CHANGES LURRENT LURRENT PROPUSEO PROPOSED EENEFIT CITY PLAN PPU CITY PLAN PPO CHANGE Prescription Drugs I Not Applicable l $6 Co-Pay 1 Not Applicable 1 $6 Cc-Pay I No l # Brand Drugs 1 I Brand Drugs 1 1 $2 Co-Pay I # $2 Co-Pay I I l Generic Drugsl I Generic Drugs 1 Home Health Care 1 $250 Deductible 1 90% of 1 $250 Deductiblel 90% of I 1 # U% of I Eligible Exp.1 80% of I Eligible Exp. l Na j l Eligible Exp. l # Eligible Exp. I 1 Ambulance To/From 1 $250 Deduct. I N/A # Nearest Hcspital I 60% of I I $250 Deduct. I N/A j No I Eligible Exp. 86% of 1 # I l l l Eligible Exp. l i Maternity Cenefits 1 $250 Deduct. 1 90% of $25 l 0 Deduct. 190% of 1 f I No Physician 60% of Eligible ExR I 60% of Eligible Exp, 1 s I Eligible Ex p. I Eligible Ex I 1 j MENTAL AND NERVOUS l l f JJJ I j I Maximum Lifetime 1 $5U,ODG 1 $50,000 1 $50,000 1 $50,000 j bLnefit 1 1 1 I 1 I j Maximum Calendar # $15,000 I $15,000 f $159000 # $15,000 1 Year Inpatient Hospital 1 $250 Deduct. 1 $100 Cc-Pay I $250 Deduct. I $100 Cc-Pay I No I 80% of 1 96% of 1 8U% of I 90% of 1 1 Eligible Exp. 1 Eligible Exp.l Eligible Exp. l Eligible Exp. In-Patient 1 $250 Deduct. { 90% of 1 $250 Deduct. 190% of I No Physician 1 80% of I Eligible Exp.# 80% of # Eligible Exp. # I Eligible Exp. i 1 Eligible Exp. I I i .+'Y ►PVti. YfWMbA:M:'i .r ..Yn. r r.. ml ~l I` I ~[I 7 CITY OF DENTON HEALTH PLAN PROPOSED CHANGES CURPENI CURRENT PROPOSED PROPOSED BENEFIT CITY PLAN PPO CITY PLAN PPO CHANCE Cut-Patient I $250 Deduct, I $20 Cc-Pay I $250 Deduct. 1 $20 Cc-Pay up to I No Physician I 70% of I up to a Max I 7O% of I a t:ax of 20 1 I Eligible Exp. I of 20 Visits ! Eligible Exp. I Visits Per ! I to a Vax I Per Calerioar l to a Max I Calendar Year ! I Benefit of I Year I Benefit of I I $2 UCO I I $2 000 I _ 1-0IMUM LiFLTI~E I One Killion I Cne Million I One Pillion I One Killion ! No BENEFITS I Dollars I Collars I Dollars I Dollars 1 I ! I I I I T~~ WIMUM OUT OF 1 $1,550 Includingl $1,000 Per 1 $21000 1 $1,500 Per I Yes POCKET I the $250 1 Participant I Irx:luding the I Participant Per I I Deductible I Per Calendar I $250 Deduct. I Calendar Year I I Per Par- I Year-Does Notl Per Par- ! Does Not Includel ' I ticipant Per 1 Include the I ticipant Per l the Hosp. I I Calendar Year I Hospital 1 Calendar Year I Facility Charge I ' _ I I Facility Ch .1 i ! PENALTIES I I I I I I i Non Pre-Cer- I No requirement I No requirement} If employee I If employee opts I Yes tification of a I for pre-cert. I for pre-cert.) opts not to I not to pre-cert,l i Hospital I I I pre-cert., I Benefits reducedl Confinement I I I Eenfits re- I to 50% 1 I ! I duced 'o 50% I I VISION PROGRAM I I I ! I BENEFITS I I I I I i ! I I I , One Eye Exam Per 1 No Ueductible I No Deductiule I No Deductible ! No Deductible l No Calendar Year I 106% of l 100% of ! 100% of I l0U% of I ` I Eligible Exp, I Eligible Exp.1 Eligible Exp. I Eligible Ex;,. I iI i 1 I r E" r` f CITY OF DENTON HEALTH PLAN y PROPOSEO CHANGES CURRENT CURRENT PROPOSED PROPOSED BENEFIT CITY PLAN PPO CITY PLAN PPO CHANGE Lenses and Frames I $25 Deductible I N/A I $25 Deductible I N/A I No 1 Pair Per Ye.r ! 56% of I I 56% of Eligible Exp. i i Eligible Exp. i ! Contacts-1 Per ( 50% of I N/A 150% of I N/A ! No Year I Eligible Exp. I I Eligible Exp, I ! E a 14042 090688:0830 i i I i I k ;.L k' C 4 ATTACHMENT 5 CITY OF DENTON SELF INSURANCE FUND REVENUE/EXPENSE PROJECTIONS Revised Revised I I Oct 69 Projections I Oct 90 Projections I (Oct 86 - Set 69) I (Oct 69 - Set 90) I We Venue 5 City Contribution I $ 1701000 ~ I ii I 639,206e l $ 941,54Ge I Premiums I 293,26Of I 1431280 tt Other Admin. I { - LTD Premiums I l - Emp./Retiree Pd, I Premiums I 11084, SUBTOTAL i Expenses II I I Personal Services I 15,508 I 151508 Ins, Processing Feesl 184,185 1 184,165 - Ind. Stop-Loss I - Aggr, Stop-Loss I l - Admin. Fee I I - LTD Charges I I UR Fees I 792,0008 i 871,200h Claims SUDTOTAL i 991,693 i `T,g07O1E9 Gain (Loss) I 310r794 I 13,928 ~ i##N#########k#NN######!###########NN##NN####N##A########N###!AN##########A###R h Fund balance I Beginning I (-363,950) I 53,156) Gain (Loss) i 3109794 I 13,928 j 3 Ending 5 I 39,229T ###A########N#I##~#N##..#######N######►############N##►##N#N#### N Estimated i Additional Revenues I l I PPO with plan I , ' ~ 50 000 o- design changes i SU, LW l ' 'A 3 0 M67 Opxemiun increase 20120/30 f$150,000 Aggregate stop-loss recovery gS66,U00 average claims per With 10% inflation factor) h$72,600 average claims per month 10% inflation factor) 1426z 09066671135 t :.t ti t s ATTAMMENT 6 CITY OF DENTON SELF-INSLRANCE FUND FUND BALANCE PROJECTIONS With Rate Estimated Adjusted Increase Claims Fund Additional Fund By City Inflation FY Ealance PPO Revenue Balance Category Contribution Rate 1987/86 $(-3739997) 1988/89 53,156) 501000 39156) 20/20/30 $1709000 +10% 1989/90 391229) 501000 100771 20/20/30 +10% i 1990/91 290076) 50,000 20,924 10/10/20 +1G% i 1991/92 15,943) 50, GOO 349057 10/10/20 +10% 1992/93 9,626 50,006 590026 10/10/20 +10% t i i i - 1426z ' _ 090888:1.135 1 e9 J y 1 i f 4` f I V i I ATTACHMENT 7 :M LIST OF HOSPITALS AND IPAS UNDER NEGOTIATION WITH COORDINATED BENEFITS SYSTEM I Hospitals Physicians o Flow Memorial o Baylor/Parkside Lodge o Denton IPA o Dallas hemcrial Hospital o Lewisville IPA 7^' o Dallas/Fort Worth IPA o Medical city o St. Paul o Carrollton IPA o Denton CcmffQnity Hospital o A}iI - Yestgate f o Parkside - Denton a o Fort Worth osteopathic ` o Harris hospital Southwest o hugley Memorial G o Sherman hedical Plaza c Plano Willow Park hospital I a. 4963P 690666:1145 ` a 1' P 1 F; I N AITAMENT 6 i SELF-INSURED HEALTH PLAN Background r o Established 1978 due to significant rate increases by Blue 1r Cross/Blue Shield f c Life Insurance Company of the Southwest provided claims processing IIII services through 1967 o Savings on the Plan fran 1978 through 1962 were approximately $440,000 (difference in premium payments of traditional insurarce and self-insurance) o 1966/87 - $100,0D0 surplus (April J967) I $57,L00 average claims per month (September 1967) I f 1987/66 o City changed to Coordineted Benefit Systems (CBS) to process claims s o Purpose - to lower administrative costs - to improve claims turnaround o "Shock claims" o Preferred Provider Oiganization (PPO) and Utilization Review through Southwest Preferred Health Network I Current status o Negotiations with Independent Physician Assocations (IPA) End a hospitals (see attachment) o Contracts with providers through CBS (final contracts for Legal Review by September 1, 1988) o Utilization Review through LBS o Open Enrollment - October 1988 - Effective hover-ter 1, 1966 Cost Control o Strategies: supplement fund $170,000 - Employee rate i.-creases - Favorable Usual/Customary/Reasonable (UCR) rates in PPO agreemmnts ! . Elinor plan design changes to shfit some costs to claimarts - fund actuartel audit 1 4963P 090666:1140 i 1 i { { HEALTH MAINTENANCE ORGANIZATIONS (HMO) 1 Mardated by Federal Law through the HMO Act of 1973 ; Ij Maxicare North Texas o City Joined North Texas PedCare hPO August 19e4 (net federally qualified) ` o Maxicare North Texas acquired North Texas HedCare February 1981 r (federally qualified) o Maxicare has doctors and facilities throughout the Denton, Dallas/Fort north betroplex o Contract renewal November 1 Southwest Health Plan o Federally qualified WO E o Ci'y participation began November 1, 1967 o Established facilities in the Denton, Dallas/Fort Vorth metroplex 1 o Currently negotiating with physicians in Denton o Contract renewal November 1 I I j 4963E 062668:11% y i 1 , ~I E I N 5 ti } 7 1 I t~ ENI) I i } If I ~ I I 'F C) F ~Y FILE 1 I